Deal Closes As International Carriers Take 25% Stake in WestJet
by Bruce Parkinson
WestJet has completed the sale of a 25% stake to three foreign airlines.
Onex Corp., the Toronto-based private equity firm and WestJet’s majority owner, has closed a deal selling minority stakes to American, European and Asian competitors.
U.S.-based Delta Air Lines now owns 12.7% of WestJet shares, while Korean Air owns 10% and Air France-KLM 2.3%.
The US$550 million deal was announced in May of this year and closed yesterday.
“Our new partners are widely regarded as among the best-performing and most innovative airlines in the world,” said Tawfiq Popatia, Head of Onex Partners and a member of WestJet’s Board of Directors
“This investment has created a terrific amount of value for Onex Partners and its investors to date, including through the unprecedented headwinds posed by the pandemic. We look forward to building on this track record for all of WestJet’s investors, both new and continuing.”
The Onex Group, which includes Onex Partners and its affiliated funds and co-investors, will continue to own and control WestJet, owning 75% of the airline.
“This closing marks a milestone in our airline partnerships, building on existing relationships and reflecting confidence in WestJet’s strategy, performance, and people,” said WS CEO Alexis von Hoensbroech.
“We are proud to welcome our new airline shareholders and look forward to further strengthening our partnerships with their airlines to create long-term value for guests.”
Founded in 1996, WestJet started with just three planes and five destinations. From its Calgary home base the airline has grown into Canada’s second-largest carrier, with a fleet of 200 planes travelling to more than 100 destinations.
